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HomeMy WebLinkAboutOrdinance 2600 I�k JL'U . ORDINANCE NO , Oo �U u,� C �Cv1 Y ,4 t �; fR AN ORDINANCE AUTHORIZING THE ISSUANCE OF GENE .. OBLIGATION IMPROVEMENT BONDS FOR THE PURPOSE OF FINANCING THE COST OF IMPROVEMENTS TO THE CITY HOSPITAL ; LEVYING A TAX SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON THE BONDS ; PRESCRIBING OTHER MATTERS RELATING THERETO ; AND DECLARING AN EMERGENCY . MICR ® FILMED WHEREAS , the City of Fayetteville , Arkansas , is a city of the first class ( the " City " ) ; and WHEREAS , by Ordinance No . 2566 , duly passed by the Board of Directors of the City , and approved on the 42 LJ' day of 1979 , there was submitted to the qualified electors of the City the question of issuing , under Amendment No . 13 to the Constitution of the State of Arkansas , General Obligation Improvement Bonds in the principal amount of $ 1 , 376 , 000 ( the " bonds " ) for the purpose of financing the cost of improvements to the City ' s Hospital ( the " improvements " ) , paying necessary expenses incidental thereto and paying the expenses of issuing the bonds ; and WHEREAS , at a special election held November 6 , 1979 , a majority of the electors voting on the question approved the issuance of the bonds ; and WHEREAS , the results of the election were announced by the Mayor by a Proclamation duly published in a newspaper of bona fide circulation in the City ; NOW , THEREFORE , BE IT ORDAINED by the Board of Directors of the City of Fayetteville , Arkansas : Section 1 . That the improvements be accomplished . Section 2 . That the sale of the bonds , as set forth below , be , and the same is hereby , approved and authorized . Section 3 . That under the authority of the Constitution and laws of the State of Arkansas , including particularly Amendment No . 13 to the Constitution of the State of Arkansas , City of Fayette- ville , Arkansas General Obligation Improvement Bonds are hereby NC CFIIMED DATE APR 3 1980 REEL ® 1u09 357 1 1 • . 2 - authorized and ordered issued in the total principal amount of $ 1 , 376 , 000 , the proceeds of the sale of which are necessary to provide sufficient funds for accomplishing the improvements . The bonds shall be dated January 1 , 1980 and shall mature on January 1 in each of the years 1983 to 2002 , inclusive , as set forth in the Notice of Sale , below . The bonds shall be sold for the best bid obtainable , upon the terms and as set forth in the Notice of Sale of substantially the form as follows : ® 1" 9 358 NOTICE OF SALE $ 1 , 376 , 000 CITY OF FAYETTEVILLE , ARKANSAS GENERAL OBLIGATION IMPROVEMENT BONDS _ DATED JANUARY 1 , 1980 The City of Fayetteville , Arkansas ( the " City " ) , gives notice that there will be sold on sealed bids at . m . , local time 1980 $ 1 , 376 , 000 City of 'Fayetteville , Arkansas General Obligation Improve- ment Bonds ( the " bonds " ) being issued under Amendment No . 13 to the Constitution of the State of Arkansas . The bonds will be dated January 1 , 1980 . Interest will be payable July 1 , 1980 and semiannually thereafter on January 1 and July 1 of each year . The bonds will mature - on January 1 of each year as follows ( but shall be subject to redemption prior to maturity as hereinafter set forth ) : YEAR AMOUNT 1983 $ 36 , 000 1984 40 , 000 1985 40 , 000 1986 45 , 000 1987 45 , 000 1988 50 , 000 1989 55 , 000 1990 55 , 000 1991 60 , 000 1992 65 , 000 1993 65 , 000 1994 70 , 000 1995 75 , 000 1996 801000 1997 85 , 000 1998 90 , 000 1999 95 , 000 2000 100 , 000 2001 110 , 000 2002 115 , 000 Issuance of the bonds was approved by the electors of the City at a special election . The bonds are being issued for the pur - pose of financing the cost to the City of constructing improvements to the City ' s Hospital . X1;09 359 The bonds are general obligations of the City , and the City pledges to the payment of the bonds its full faith , credit and taxing power , including particularly collections of a continuing annual special tax of two mills ( the " special tax " ) on the assessed valuation of all the taxable real and personal property located in the City . The bonds will be subject to redemption prior to maturity (mandatory from surplus tax collections ( defined below ) and optional from other sources ) in inverse numerical order at a price of par and accrued interest as follows : ( 1 ) From surplus collections of the special tax on any interest payment date ; ( 2 ) From funds from any source on any interest payment date on and after January 1 , 1985 . The amount of the interest payments ( due July 1 , 1980 , January 1 , 1981 and July 1 , 1981 ) will be provided for from the pro - ceeds of the sale of the bonds . The City reserves the right to reim- burse the bond proceeds in that amount from the first available col - lections of the special tax . The City will covenant that , subject to the conditions set forth below , surplus tax collections , being collections from the special tax in excess of the amount necessary to insure the prompt payment of the principal of , interest on , and trustee ' s and paying agent ' s fees in connection with the bonds as the same become due , must be used from time to time on each interest payment date , as and to the extent available , to redeem outstanding bonds prior to maturity . There will be such mandatory redemption to the extent that the total interest cost to the City for the period of the projected payout on the basis of the mandatory call does not exceed the interest cost ® 1J39 360 that would result from an interest rate of 6 % per annum for the period of the projected payout on the money received by the City . In determining the extent of such mandatory redemption , it will be assumed ( 1 ) that collections of the special tax will be at the rate of 100 % , ( 2 ) that the same ( 1979 ) assessed valuation will continue and ( 3 ) that the principal added by the conversion constitutes in- terest . Redemption on interest payment dates from surplus tax collec- tions in excess of such mandatory redemption will be optional . Under the law , however , all collections of the special tax must be used for payment of debt service on the bonds at maturity or redemption prior to maturity and can be used for no other purpose . Supplemental and dual coupons will not be permitted , but the purchaser shall have the privilege of converting the bonds to an issue bearing a lower rate or rates of interest , with any conver- sion to be upon such terms that the City receive no less and pay no more than it would receive and pay if the bonds were not converted , to be ' subject to the approval of the City ' s Board of Directors , and to be subject to the following conditions : 1 . Any conversion shall be in accordance with the Universal Bond Values Tables ; 2 . The average maturities may not be shortened by more than six months ; 3 . The difference between the highest rate of interest and the lowest rate of interest in the converted schedule may not exceed 1 % ; 4 . The difference between the rate bid and the lowest rate of interest in the converted schedule may not exceed 1 % ; and 5 . All bonds maturing on the same date shall bear the same rate of interest . Each bidder shall specify one rate of interest . No bid of less than par plus accrued interest will be entertained . The award , if made , will be to the bidder whose bid results in the lowest net interest cost to the City , determined by computing the total interest at the rate bid from the date of the bonds to maturity and deducting therefrom the amount of any premium bid . The purchaser may name the Trustee and Paying Agent for the bonds . All expenses of the issue , including the Trustee ' s authen- tication fee , printing of the bonds and the fee of Friday , Eldredge — & Clark , Bond Counsel , will be paid by the City . No contingent provisions may be included in the bids , and the City reserves the right to reject any and all bids . Sealed bids will be received until the date and time speci - fied above . All bids will be opened on that date and at that time in the Board of Directors Chambers , City Hall , Fayetteville , Arkansas 72442 . All bids must be enclosed in a sealed envelope addressed to the Mayor of the City and plainly marked on the outside " Proposal for $ 1 , 376 , 000 City of Fayetteville , Arkansas General Obligation Improvement Bonds , dated January 1 , 1980 . " There must be enclosed with each bid a certified or cashier ' s check in the amount of $ 27 , 520 payable to the City to be kept as liquidated damages if the bidder is awarded the sale of the bonds and fails to complete the purchase . Checks of unsuccessful bidders will be promptly returned , but the City will not pay interest on good faith checks . All bids must be on the Official Bid Form . The bonds will be delivered to the purchaser within sixty ( 60 ) days from the date of the sale . Delivery shall be at any location in the State of Arkansas , selected by the purchaser , or , at the expense of the pur- chaser , at another location selected by the purchaser . Additional information , copies of the Official Statement and of the Official Bid Forms may be obtained from the undersigned or Bond Counsel . GIVEN this day of 1980 . CITY OF FAYETTEVILLE , ARKANSAS By /s/ Scott C . Linebau h Mayor INSTRUCTIONS : Publish once a week for three consecutive weeks in a local newspaper with the first publication to be at least twenty ( 20 ) days prior to the date of sale . Please send a copy of the first pub- lication to Friday , Eldredge & Clark , The First National Building , Twentieth Floor , Little Rock , Arkansas 72201 , and furnish three proofs of publication after the required three publications . ® � Joy : - 7 - The Mayor is authorized to publish the Notice of Sale and to execute such writings and take such action as shall be inci - dental or appropriate to the sale of the bonds and the implementa - tion of the powers and the accomplishment of the purposes hereof . The successful bidder for the bonds may , subject to approval of the City , name the Trustee and Paying Agent for the bonds , and the Board of Directors will adopt a resolution approving the Trustee and Paying Agent and the details of the bonds as they are being issued , such as the purchase price , rates of interest , denomination , bond numbers , and annual and semiannual principal and interest requirements. Section 4 . That the bonds shall be executed on behalf of the City by the Mayor and City Clerk (with the facsimile signature of the Mayor and the manual signature of the City Clerk ) and shall have impressed thereon the seal of the City . Interest coupons shall be executed by the facsimile signature of the Mayor . The facsimile signature of the Mayor on the bonds and coupons shall have the same force and effect as if he had personally signed each of the bonds and coupons , Section 5 . That the bonds and coupons shall be in substantially the following form : ® 1lu33 363 UNITED STATES OF AMERICA STATE OF ARKANSAS COUNTY OF WASHINGTON CITY OF FAYETTEVILLE % GENERAL OBLIGATION IMPROVEMENT BOND No . KNOW ALL MEN BY THESE PRESENTS : That the City of Fayetteville , Washington County , Arkansas ( the " City " ) , acknowledges itself to owe and for value received promises to pay to bearer , or if this bond be registered , to the registered owner hereof , the sum of DOLLARS in lawful money of the United States of America on the first day of January , , and to pay interest hereon at the rate of percent ( % ) per annum from date until paid . Interest is payable semiannually on January 1 and July 1 of each year , commencing July 1 , 1980 . Payment of principal , and payment of interest when evidenced by coupons , shall be made upon presentation of the bonds and coupons at the principal office of ( the " Trustee " and " Paying Agent " ) . Payment of interest when registered as to interest shall be by check or draft mailed to the registered owner at his address reflected on the registration book of the City maintained by the Trustee as Bond Registrar . This is one of an issue of bonds , aggregating $ dated Janaury 1 , 1980 , and numbered from 1 to , inclusive , all of like tenor and effect except as to number , denomination , rate of interest , maturity and right of prior redemp- tion . The bonds are issued for the purpose of financing the cost of the construction of improvements to the City ' s Hospital , paying necessary expenses incidental thereto and paying the expenses of issuing the bonds . ® 1003 364 - 9 - The bonds are issued pursuant to and in full compliance with the Constitution and laws of the State of Arkansas , particularly Amendment No . 13 to the Constitution of the State of Arkansas , and _ pursuant to Ordinance No , of the City , passed and approved on the day of , 1980 ( the "Authorizing Ordinance " ) , and an election duly held at which the majority of the legal voters of the City voting on the question voted in favor of the issuance of the bonds . Reference is hereby made to the Authorizing Ordinance for the details of the nature and extent of the security and of the rights and obligations of the City and the holders and registered owners of the bonds . The bonds are general obligations of the City , payable from the proceeds of a continuing annual two mill special tax ( the " special tax " ) levied by the City under the authority of Amendment No . 13 to the Constitution of the State of Arkansas , and the City hereby pledges its full faith , credit and taxing power , including the special tax , for the payment of this bond . The bonds are subject to redemption prior to maturity (mandatory from surplus tax collections ( defined below ) and optional from other sources ) in inverse numerical order at a price of par and accrued interest as follows : ( 1 ) From surplus collections of the special tax on any interest payment date ; ( 2 ) From funds from any source on any interest payment date on and after January 1 , 1985 . The amount of the interest payments ( due July 1 , 1980 , January 1 , 1981 and July 1 , 1981 ) will be provided for from the pro - ceeds of the sale of the bonds . The City reserves the right to reim- burse the bond proceeds in that amount from the first available col- lections of the special tax . The City covenants that , subject to the conditions set forth below , surplus tax collections , being collections from the special tax in excess of the amount necessary to insure the prompt ® IOC3 365 - 10 - payment of the principal of , interest on , and trustee ' s and paying agent ' s fees in connection with the bonds as the same become due , must be used from time to time on each interest payment date , as and to the extent available , to redeem outstanding bonds prior to maturity . There will be such mandatory redemption to the extent that the total interest cost to the City for the period of the projected payout on the basis of the mandatory call does not exceed the interest cost that would result from an interest rate of 6 % per annum for the period of the projected payout on the money received by the City . In determining the extent of such mandatory redemption , it will be assumed ( 1 ) that collections of the special tax will be at the rate of 1000 , ( 2 ) that the same ( 1979 ) assessed valuation will continue and ( 3 ) that the principal added by the conversion constitutes in- terest . Redemption on interest payment dates from surplus tax collec - tions in excess of such mandatory redemption will be optional . Under the law , however , all collections of the special tax must be used for payment of debt service on the bonds at maturity or redemption prior to maturity and can be used for no other purpose . Notice . of the call for redemption shall be published one time in a newspaper published in the City of Little Rock , Arkansas , and having a general circulation throughout the State of Arkansas , giving the number and maturity of each bond being called , the publi - cation to be at least fifteen ( 15 ) days prior to the redemption date , and after the date fixed for redemption each bond so called shall cease to bear interest , provided funds for its payment are on deposit with the Paying Agent at that time . In addition , notice by registered or certified mail shall be mailed , fifteen ( 15 ) days prior to the redemption date , to the registered owner of each bond registered as to principal at the address of such owner reflected on the bond registration book of the Bond Registrar , and if all outstanding bonds shall be registered as to principal , notice by registered or certified mail to the registered owners thereof shall be sufficient , and it shall not be necessary to publish notice of the call . � 1OCO 366 This bond may be registered as to principal or as to principal and interest and may be discharged from such registration in the manner , with the effect and subject to the terms and conditions endorsed hereon . Subject to the provisions for registration endorsed hereon , nothing contained in this bond or in the Authorizing Ordinance shall affect or impair the negotiability of this bond and this bond shall be deemed a negotiable instrument under the laws of the State of Arkansas and is issued with the intent that the laws of the State of Arkansas will govern its construction . IT IS HEREBY CERTIFIED , RECITED AND DECLARED that all acts , conditions and things required to exist , happen and be performed , under the Constitution and laws of the State of Arkansas , particularly Amendment No . 13 to the Constitution of the State of Arkansas , precedent to and in the issuance of this bond have existed , have happened and have been performed in ' due time , form and manner as required by law ; that the indebtedness represented by this bond and the issue of which it forms a part does not exceed any constitu- tional or statutory limitation ; and that a tax sufficient to pay the bonds and interest thereon has been duly levied in accordance with Amendment No . 13 to the Constitution of the State of Arkansas and made payable annually until all of the bonds and interest thereon have been fully paid and discharged . This bond shall not be valid until it shall have been authenticated by the Certificate hereon duly signed by the Trustee . IN WITNESS WHEREOF , the City of Fayetteville , Arkansas , has caused this bond to be executed in its name by the facsimile signature of the Mayor , the manual signature of the City Clerk and its corporate seal to be affixed and has caused the coupons hereto attached to be executed by the facsimile signature of its Mayor , all as of the first day of January , 1980 . CITY OF FAYETTEVILLE , ARKANSAS ATTEST : By ( facsimile signature ) Mayor City Clerk ( SEAL ) �sa� 69 367 - 12 - ( form of coupon ) No . $ On the first day of ( January ) ( July ) , 19_ , the City of — Fayetteville , Washington County , Arkansas , unless the bond to which this coupon is attached is paid prior thereto , hereby promises to pay to bearer DOLLARS in lawful money of the United States of America at the principal office of , being six ( 6 ) months interest then due on its General Obligation Improvement Bond , dated January 1 , 1980 , and numbered CITY OF FAYETTEVILLE , ARKANSAS By ( facsimile signature ) Mayor On each bond shall appear the following : CERTIFICATE This is to certify that this is one of the City of Fayetteville , Arkansas General Obligation Improvement Bonds , dated January 1 , 1980 , mentioned and described within . TRUSTEE By Authorized Signature PROVISIONS FOR REGISTRATION AND RECONVERSION This Bond may be registered as to principal alone on books of the City, kept by the Trustee as bond registrar, upon presentation - hereof to the bond registrar, which shall make mention of such regis- tration in the registration blank below, and this Bond may thereafter be transferred only upon an assignment duly executed by the registered owner or his attorney or legal representative in such form as shall be satisfactory to the bond registrar, such transfer to be made on such books and endorsed hereon by the bond registrar. Such transfer may be to bearer, and thereafter transferability by delivery shall be restored, but this Bond shall again be subject to successive reg- istrations and transfers as before. The principal of this Bond, if registered, unless registered to bearer, shall be payable only to or upon the order of the registered owner or his legal representative. Interest accruing on this Bond will be paid only on presentation and surrender of the attached interest coupons as they respectively become due, and notwithstanding the registration of this Bond as to principal, the appurtenant interest coupons shall remain payable to bearer and shall continue to be transferable by delivery; provided, that if upon registration of this Bond, or at any time thereafter while this Bond is registered in the name of the owner, the unmatured coupons attached evidencing interest to be thereafter paid hereon shall be surrendered to said bond registrar, a statement to that effect will be endorsed hereon by the bond registrar and thereafter interest evidenced by such surrendered coupons may be paid by check or draft of the bond registrar at the times provided herein to the registered owner of this Bond by mail to the address shown on the registration books. This Bond when so converted into a bond registered as to both principal and interest may be reconverted into a coupon bond at the written re- quest of the registered owner and upon presentation at the office of said bond registrar. Upon such reconversion the coupons representing the interest to become due thereafter to the date of maturity will again be attached to this Bond and a statement will be endorsed hereon by the bond registrar in the registration blank below whether it is then registered as to principal or payable to bearer. ®13Q9 369 : Manner of : Signature of - Date of Registration: Name of Registered Owner:Registration:Bond Registrar : • • : • • . • . ®100 370 -15 - Section 6. That in order to pay the bonds as they mature, with interest thereon, there is hereby levied upon all taxable real and personal property within the City a continuing annual special tax of two mills (the "special tax") on each dollar of assessed valuation to be collected annually as long as may be necessary to pay the principal of, interest on and Trustee's and Paying Agent's fees in connection with the bonds. The City Clerk is directed to transmit a copy of this Ordinance to the County Clerk of Washington County, Arkansas, to the end that the special tax may be extended on the tax books of the County and collected annually along with the other taxes until the bonds and interest thereon are paid in full or until adequate provision is made for their payment. The City covenants and agrees that all of the revenues from the special tax shall be placed in a separate fund, which is hereby created and designated "1980 General Obligation Improvement Bond Fund" (the "Bond Fund"), in a bank or banks designated from time to time by the City holding membership in the Federal Deposit Insurance Corporation and used solely for the payment of the principal of, interest on and Trustee's and Paying Agent's fees in connection with the bonds. The amount of the deposit in excess of that insured by the Federal Deposit Insurance Corporation must be continuously secured by bonds or other direct or fully guaranteed obligations of the United States of America, except that moneys invested as hereinafter provided need not be so secured. Moneys in the Bond Fund may be invested in direct obligations of, or obligations the principal of and interest on which are guaranteed by, the United States of America, which mature or are subject to redemption at the option of the holder at or prior to the date the moneys will be needed to meet debt service requirements on the bonds. All such investments shall be considered a part of the Bond Fund from which made and all earnings and profits credited to, and I�10G9 371 -16 - all losses charged against, such fund. The City covenants that all revenues derived from the special tax in excess of the amount necessary to insure the prompt payment of the principal of, interest on and Trustee's and Paying Agent's fees in connection with the bonds as they mature will be used from time to time on each interest payment date, as and to the extent available, for the redemption of bonds prior to maturity, as set forth in Sections 3 and 4 hereof. Section 7. That for the prompt payment of the bonds, with interest, the City hereby pledges its full faith, credit and taxing power, including the special tax levied in Section 6 of this Ordinance. Section 8. That in order to pay the principal of and interest on the bonds as they mature and as they are redeemed prior to maturity, there are hereby appropriated the entire proceeds of the special tax levied in Section 6 hereof, and if the proceeds be not sufficient to pay the principal of and interest on the bonds as they mature, then there are hereby appropriated sufficient additional funds out of the general revenues of the City to accomplish the payment at maturity. Section 9. That the bonds shall be callable for payment prior to maturity in accordance with the terms set out in the bond form in Section 5 of this Ordinance. Section 10. That the Treasurer of the City is hereby ordered and directed to place on deposit with the Paying Agent, at least two (2) days before the maturity date of any bond or interest coupon issued hereunder, an amount from the funds herein appropriated equal to the amount of such bonds or coupons, for the sole purpose of paying the same, together with the customary Paying Agent's fee. This instruction to the Treasurer is irrevocable and may be enforced by mandamus. 1909 372 -17 - Section 11. (a) That if there be any default in the payment of the principal of and interest on any of the bonds, or if the City defaults in any Bond Fund requirement or in the performance of any other covenant contained in this Ordinance, the Trustee may, and upon the written request of the holders of not less than ten percent (10%) in principal amount of the bonds then outstanding shall, by proper suit compel the performance of the duties of the officials of the City under the Constitution and laws of the State of Arkansas and under this Ordinance and protect and enforce the rights of the bondholders by acceleration, instituting appropriate proceedings in law or equity or other action deemed necessary or desirable by the Trustee. (b) No holder of any bond shall have any right to institute any suit, action, mandamus or other proceeding in equity or at law for the protection or enforcement of any right under this Ordinance or under the Constitution and laws of the State of Arkansas unless such holder previously shall have given to the Trustee written notice of the default on account of which such suit, action or proceeding is to be taken, and unless the holders of not less than ten percent (10%) in principal amount of the bonds then outstanding shall have made written request of the Trustee after the right to exercise such powers or right of action, as the case may be, shall have accrued, and shall have afforded the Trustee a reasonable opportunity either to proceed to exercise the powers herein granted or granted by the Constitution and laws of the State of Arkansas, or to institute such action, suit or proceeding in its name, and unless, also, there shall have been offered to the Trustee reasonable security and indemnity against the cost, expenses and liabilities to be incurred thereon or thereby and the Trustee shall have refused or neglected to comply with such request within a reasonable time, and such notification, request and offer of indemnity are hereby declared ®LOUD 373 -18 - in every such case, at the option of the Trustee, to be conditions precedent to the execution of the powers and trust of this Ordinance or to any other remedy hereunder. It is understood and intended that no one or more holders of the bonds hereby secured shall have any right in any manner whatever by his or their action to affect, disturb or prejudice the security of this Ordinance, or to enforce any right hereunder except in the manner herein provided, that all proceedings at law or in equity shall be instituted, had and maintained in the manner herein provided and for the benefit of all holders of the outstanding bonds and coupons, and that any individual rights of action or other right given to one or more of such holders by law are restricted by this Ordinance to the rights and remedies herein provided. (c) All rights of action under this Ordinance or under any of the bonds secured hereby, enforceable by enforced by it without the possession of any of appertaining thereto, and any such suit, action by the Trustee shall be brought in its name and all the holders of the bonds and coupons, subje of this Ordinance. the Trustee, may be the bonds or coupons or proceeding instituted for the benefit of ct to the provisions (d) No remedy herein conferred upon or reserved to the Trustee or to the holders of the bonds is intended to be exclusive of any other remedy or remedies herein provided, and each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or given by any law or by the Constitution of the State of Arkansas. (e) No delay or omission of the Trustee or of any holders of the bonds to exercise any right or power accrued upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or an acquiescence therein, and every power and remedy given by this Ordinance to the Trustee and to the holders of the bonds, respectively, may be exercised from time to time and as often as may be deemed expedient. ®1G99 374 -19- (f) The Trustee may, and upon the written request of the holders of not less than ten percent (10%) in principal amount of the bonds then outstanding may, waive any default which shall have been remedied before the entry of final judgment or decree in any suit, action or proceeding instituted under the provisions of this Ordinance or before the completion of the enforcement of any other remedy, but no such waiver shall extend to or affect any other existing or any subsequent default or defaults or impair any rights or remedies consequent thereon. Section 12. That when the bonds herein authorized to be executed have been executed by the Mayor and City Clerk and the seal of the City impressed as herein provided, they shall be delivered to the Trustee, which shall authenticate them and deliver them to the purchasers upon payment in cash of the purchase price plus accrued interest from January 1, 1980 ("total sale proceeds"). The amount necessary to provide for the payment of interest on the bonds until collections of the special tax are available shall be deposited in the Bond Fund, the City expressly reserving the right to reimburse the Construction Fund (hereinafter identified) from the Bond Fund in the amount of such deposit. The balance of the total sale proceeds shall be deposited in a special account of the City hereby created and designated the "Construction Fund" in a bank that is a member of the Federal Deposit Insurance Corporation. The moneys in the Construction Fund shall be used for accomplishing the improvements, paying expenses incidental thereto and paying the expenses of issuing the bonds, with any unexpended balance to be deposited in the Bond Fund. Moneys on deposit in the Construction Fund in excess of the amount insured by the Federal Deposit Insurance Corporation must be continuously secured by bonds or other direct or fully guaranteed obligations of the United States of America; provided, however, a1009 375 -20 - moneys in the Construction Fund that are invested as hereinafter provided need not be so secured. Moneys in the Construction Fund may be invested in direct obligations of, or obligations the principal_ of and interest on which are guaranteed by, the United States of America, or in bank certificates of deposit, having maturity dates, or subject to redemption at the option of the holder, not later than the date or dates on which the moneys will be needed for accomplishing the improvements. Section 13. That the Trustee shall only be responsible for the exercise of good faith and reasonable prudence in the execution of its trust. The recitals in this Ordinance and in the face of the bonds are the recitals of the City and not of the Trustee. The Trustee shall not be required to take any action as Trustee unless it shall have been requested to do so in writing by the holders of not less than ten percent (10%) in principal amount of the bonds then outstanding and shall have been offered reasonable security and indemnity against the costs, expenses and liabilities to be incurred therein or thereby. The Trustee may resign at any time by ten (10) days notice in writing to the City Clerk, and the majority in principal amount of the holders of the outstanding bonds at any time, with or without cause, may remove the Trustee. In the event of a vacancy in the office of Trustee, either by resignation or by removal, the majority in principal amount of the holders of the outstanding bonds may appoint a new Trustee, such appointment to be evidenced by a written instrument or instruments filed with the City Clerk. If the majority in principal amount of the holders of the outstanding bonds shall fail to fill a vacancy within thirty (30) days after the same shall occur, then the City shall forthwith designate a new Trustee by a written instrument filed in the office of the City Clerk. The original Trustee and any successor Trustee shall file a written acceptance and agreement to execute the trusts imposed upon it or them by this Ordinance, but only upon the terms and conditions set forth in this Ordinance and subject to the provisions of this Ordinance, ®'iU� 316 -21 - to all of which the respective holders of the bonds agree. Such written acceptance shall be filed with the City Clerk and a copy thereof shall be placed in the bond transcript. Any successor Trustee shall also become the Paying Agent and shall have all the powers herein granted to the original Trustee and Paying Agent. Section 14. (a) That the terms of this Ordinance shall constitute a contract between the City and the holders and registered owners of the bonds and no variation or change in the undertaking herein set forth shall be made while any of these bonds are outstanding, except as hereinafter set forth in subsection (b), and the holder or registered owner of any bonds may at any time for and on his own behalf or for and on behalf of all bondholders enforce the obli- gations of the City by a proper suit for that purpose. (b) Subject to the terms and provisions contained in this Section and not otherwise, the holders and registered owners of not less than seventyfive percent (75%) in aggregate principal amount of the bonds then outstanding shall have the right, from time to time, anything contained in this Ordinance to the contrary notwithstanding, to consent to and approve the adoption by the City of such ordinance supplemental hereto as shall be necessary or desirable for the purpose of modifying, altering, amending, adding to or rescinding, in any particular, any of the terms or provisions contained in this Ordinance or in any supplemental ordinance; provided, however, that nothing herein contained shall permit or be construed as permitting (a) an extension of the maturity of the principal of or the interest on any bond issued hereunder, or (b) a reduction in the principal amount of any bond or the rate of interest thereon, or (c) the creation of a pledge of special tax revenues other than the pledge created by this Ordinance, or (d) a privilege or priority of any bond or bonds over any other bond or bonds, or (e) a reduction in the aggregate principal amount of the bonds required for consent to suchsupplemental ordinance. ®iflo9 377 -22 - Section 15. That the City covenants that it shall not take any action or suffer or permit any action to be taken or con- dition to exist which causes or may cause the interest payable on the bonds to be subject to federal income taxation. Without limiting the generality of the foregoing, the City covenants that the proceeds of the bonds will not be used directly or indirectly in such manner as to cause the bonds to be treated as "arbitrage bonds" within the meaning of Section 103 (c) of the Internal Revenue Code of 1954, as amended. Section 16. That the provisions of this Ordinance are separable and in the event that any section or part hereof shall be held to be invalid, such invalidity shall not affect the remainder of this Ordinance. Section 17. That all ordinances and resolutions and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. Section 18. That this Ordinance shall not create any right of any character and no right of any character shall arise under or pursuant to it until the bonds authorized by this Ordinance shall be issued and delivered. Section 19. That is is hereby ascertained and declared that the improvements to be financed by the bonds authorized hereby are immediately needed if the City's Hospital is to meet the medical and nursing needs of the inhabitants of the City. The improvements cannot be made without the issuance of these bonds, and, therefore, it is declared that an emergency exists and this Ordinance being necessary for the preservation of the public peace, health and safety shall be in force and take effect immediately upon and after its passage. PASSED: , 1980. APPROVED: Tod Mayor zi/ ! 'yam :(SEAL) 'I �'r:� 378 CERTIFICATE STATE OF ARKANSAS COUNTY OF WASHINGTON The undersigned, City Clerk of the City of Fayetteville, Arkansas, hereby certifies that the foregoing pages, numbered 1 to 22, inclusive, are a true and correct copy of Ordinance No. _ olrp of the City, adopted at a session of the Board of Directors of the City of Fayet eville, held at the regular meeting place of the Board in the City at 9 'W .m on the day of , 1980, and that the Ordinance is of record in Ordinance Record Book No. Viii at Page IID , now in my possession. GIVEN under my hand and seal this day of 9? 1LLOJt 1980. FAYET.F' (SEAL)• 1. • Luu•- CERTIFICATE OF RECORD STATE OF ARKANSAS SS. Washington County I, Alma L. Kollmeyer, Circuit Clerk and Ex -Officio Recorder for Washington County, do hereby cer.iry� that the annexed or fore- ;oing ins�t-r•�u�neat as filed :or r/eaa.Ym my office on the -day It � - 19 !aL/_o Iockf M, and the same is July recorded in -C2 record 'cy at page,j rvnness ❑,y hand and seal thi day of t a 79.E Circuit Clerk and Ex-�0r-"icio Recorded By t Deoutv Clerk CERTIFICATE OF RECORD State of Arkansas City of Fayetteville ( SS I. Suzanne C. Kennedy, City Clerk and E ;-Ofr"icio recorder for the City of Fayetteville, do ' reby certify that the annexed or f-;,_ gri:fft is of record in my office and the sr:' >. peurs in Ordinance & Resolution ho,,.: —V—L�1—at page l :;'a,: hand and seal this Y itY Clerk st.d •. -_-T. t••. '"3�'X: ®l -3G3 379 L OF AND INTEREST ON THE JS: PRESCRIBING OTHER FERS RELATING THERETO; ' DECLARING AN RGENCY. EREAS, the City of Fayyeetttevile, sea. a city of the fort class 'City"1:snd EREAS, by Ordinance No. Dab, yawed by the Beard of Democrats City, and approved an the and d October. In, there was sub - I to the qualified electors of the the quandaries of issuing, under distant No. 1110 the Constitution e Sate of Arkansas. General scion Improvement Bonds in the pal amount of $t.376.tw0 (the ts") far the purpose of financing at of improvements to the City's Cal (the "improvements"), 9 nenaary expenses incidental o and paying the eapensea of 9 the bonds; and EREAS. at a special election Investiture s, IPA, a majority of sectors voting on the question red the Issuance of the bonds: EREAS, the results of the in were announced by the Mayor 'rocamatian duly published In a caper of hens lice circulation in Y THEREFORE, BE IT OR• rte by the Board of Domain of ty of Fayetteville. Arkansas: m 1. That the improvements be ion 3. That under this • Constitution and t of Arkansas, inclu 'ly Amendment No. tutkn of the State Of same par - the authorized and ordered issued total principal amount of M. the proceeds of the sale of are necessary to provide so[. funds for accomplishing the (mats. The bonds shall be January I,1960andshan mature nary I in each of the years I9e3 !, inclusive, as set forth In the of Sale, below. The bonds shall I for the best bid obtainable, re terms and as set forth In the of Sale ofsubsantially the form NOTICE OF SALE "all.," CRYOF YETTEVILLE. ARKANSAS ;ENERALOBLIGATION IMPROVEMENT BONDS Cof FJANUARY 1.1Ar0 nT City d Fayeteve, Arkansas icy"), gives notice that there sod on sealed bads at lair+T ran., local time `: 000 City of Pville,` as Geneut Obligation Im. sent Bonds (the nt tut 13 being Amendment Nil l3 to the cation d the be MJanuaryry Arkaa ands willbe Janry 1, iterest will be payable July 1, id semiannually thereafter an 7 1andJdy 1derchyesr.The 'all mature m Jamary I of each follows (but shall bewbject to ,Lion prior to maturity as m Raat forth):: I....... n...... AMOUNT 9 50.0110 'r „ 50,000 i 51,000 +y . Hon ThwJ O000 !0.000 90.000 96,000 100,000 110,0% 115rov tee the e bonds was approved lean of the City at el The bonds an be ag ss issued uof fpae of financing improvements p the east to coo Hospital, improvefinents ty's Noaial. midi are general oblijatkrn d •, and the City pledges to the .t of the bad, Its full faith, 'rid taxing paler, Including srly collection of. continuing j :pedal tax of two (the `c' tax") asson the ruaaed n of an the taxabletaxablereal andsi properly tented in the City. ands will be subject to ie an prior to maturity (eans . 'rte surplus tax collecBiat , below) options) from •.;. urcal In inverse numerksl v,,, a priced par and accrued --,1 is follows: ,:Q'4,'. r•* All surplus collecllnns ellis. fY ax on any interest paymentaa r,m fund, from a eat Daymeatdat tax collect a from tia'.a • the amount o Warta pr: d, interest o0. 'R agent's fees ho contingent provisions may be included h the bids„ and the City reams the right to reject any and all bids. Scaled bids will be received until the date and time specified above. An bids will Isd opened on that date and at that time In the Board of Directors Chambers, City Hall, Fayetteville, Arkansas 72701. All bids must be en- closed in a sealed envelope addressed to the Mayor Of the City and plainly marked on the outside 'Proposal for $1.376,0% City of Fayetteville, Arkansas General Obligation Im. provement Bonds, dated January 1, There must be enclosed with each bid a certified as cashiers check in the amount of $V,5 payable to the City to be kept as liquidated damages if the bidder is awarded the saleof the bonds and fails to complete the par. chase. Checks of unsuccessful bidden will bepromptly returned, but the City will not PAY interest an good faith checks. All bids most be on the Official Bid Forth. The bonds will be delivered to , the purchaser within silty 160) days from the date of the sale. Delivery shall beat any location in the Sale of Arkansas. selected by the purchaser, or, at the expense of the purchaser, at another location selected by the purchaser. Additional information, copies of the Official Statement and of the Official Bid Forma may be obtained from the undersigned or Bond Counsel. GIVEN this day of ,1980. CITYOF h'A1'ETTF:VILLE, A RKA NSAS By s s) John Todd Maya INSTRUCTIONS Publish once a week for three consecutive weeks in a focal newspaper with the first publication to be at least twenty (20) days prior to the date of ale, Please send a copy of the first publication to Friday, Eldredge At Clark. The First National Building, Twentieth Floor, Little Rack, Arkansas 73201. and furnish three proofs of publication after the required three publications, The Maya Is authorized to publish the Notice of Sale and to execute such writing, and take such action as shall be incidental or appropriate to Neale of the bonds and the 'unpkmenatun d the powers end the accomplishment of the purposes bend. The successful bidder for the bands may, subject to approval of Ube City, name the Trustee and Paying Agent for the bonds, and the Board Paying Agent and the details of the bonds as they are being issued, such as the purchase price, mass of interest, denomination, bond numbers, and annual and semiannual Principal andInterest requirements. Section 4. That the bads shall be executed on behalf of the City by the Mayor and City Clerk (with the fac- simile signature of the Mayor and the manual signature of the City Clerk) and shall have impressed thereon the seal of the City. Interest coupon shall be executed by the facsimile signature of the Mayor, The facsimile signature of the Mayor on the bonds and copse shall have thesame force and effect as if he had personally signed each of the bondsandcoupons, . Section 5. That the bonds and coupon shall be in substantially the' fnllowsngform: UNITED STATES OF AMERICA STATE OFA RKANSAS COUNTY OF WASH INGTON CITY OF FAYL-TFEVILLE % GENERAL OBLIGATION IMPROVEMENT BOND No. _ ' . a KNOW ALL MEN BY THESE PRESENTS: - rTbal the .City- of Fayetteville, Washington County, Artaans (the y"), acknowledges itself to owe to bearer, or if this bond be regstued. to the registered owner hereof, the win of sum DOLLARS in lawful money of the United States of America on the first day of January, and a pay Interest hereon at fha n . 1 ,percent %) per annum from dab until • paid. Interest is payable semiannually on January 1 and July I of each year, commeneag July 1, 1. Payment d principal, and payment d Interest whet, evidenced by coupons, shag be made upon presentation of the bonds and capo.,s et the principal dike d .__ _. .:..setts. g and numbered from i ill of like tenor and a to number, te Of Interest, of prior redemp. e seed for the g the cant of the rovemats to the lion date, and after the date fixed four redemption each bond so called shall cease to bar interest, provided funds for its payment are on deposit with the Paying Agent at that time. In addition notice by registered or certified mail shan be mailed. fifteen n5) days print to the redemption date, to the registered owner of each bond registered as to principal at the ad- dress of such owner reflected on the bond registration brok of the Bond Registrar. and if all outstanding bonds stall be registered as to principal, 'notice by r':gstered or certified man to the registered owners thereof shall be sufficient, and it shall not be neces:ary to publish notice of the call. .This bond may be registered as to principal or as to principal and interest and may be discharged from such registration in the manor, with the —effect and subject to the corns and conditions endorsed heron. Subject to the provisions for registration en- dorsed seseun, nothing contained in this bond or in the AutMrbino ne. auame Eau ailed or impair the ,negotiability of this bond and this heed shall be deemed a negotiable Ii 'strumcnt under the laws or the Sate of Arkansas and is issued with the intent that the laws of the Sate of Arkansas ,will govern its ronstruction. 1T IS HEREBY CERTIFIED, 'RECITED AND DECLARED that all .acs, conditions and things required to exist, happen and he performed, under the Constitution and laws of the Stare b! Arkansas, particularly Amendment No.13 to the Constitution of the Sate of 'Arkansas, Precedent to and in the Issuance of (his bond lave existed, have happened and have been per- formed in due time, form and manner as *required by law; that the in- debtedness represented by this bond and the Italian of which at forms a part does net exceed any constitutional or staWwry limitation: and that a ax sufficient to pay the hinds and interest thereon has been duty levied in ac- cordance with Amendment No. 13 to the Constitution of the Sate of Arkansas and made payable annually until an of the bonds and interest thereon have been fully paid and .This bond shall not be valid until it shall have been authenticated by the Trustecate hereon duly signed by the . INte. IN WITNESS WHEREOF, the City of s bondArkansas, vUle, has caused the bond b beexecuted In Is name by the facsimile signature of the Maps the option of the has the date the moneys meet debt ser+ice re bon -b. All such in a considered a part a from which madean charges against, covenants that a from the sacrist :o redempnona- `aaemerrwa, or -•c hank cand,ra'es Cr re or not to Dab It' having matutny yin, cal be named to Da bars " roper t r: the h spans simmens an the W ou whit ester m ns date dmentt shall be forlach the mtweya will attamplshins the it the Bond Fund t. all earning, ter: � on t!4n u. That the Tnntee sit. 'and al) 1 sine }a1ta..a3. Tale tar tit..._: _ and Trustee . and Paying Ageml in connection w:U, tla bads as mature will be used from time to on each interest payment date, a to the extent avaiable. for reumnpimn of Dons prior to maturity, as set forth in Sections 3 and a hereof. Section 7. That for the prompt payment of the bonds, with interest, the City hereby pledges its full faith. credit and trims paver, including the special tax levied in Section 6 of this Ordinance. Section 8. That in order to pay the •. principal of and ant^rest on the banns as they mature and as they are redeemed prior to maturity, there are hereby appropriated (he entire proceeds of the special tax levied it: Section 6 hcrrof, a w n the proceeds be not sufficient to lay the principal of and interest on the bonds AS they mature, then there at, hereby All. proprated sufficient additional funds out of the general revenues of the City to accomplish the payment at maturity. Section 9. That the bonds shall be callable for payment prior to maturity in accordance with the terms set out jr the bond farm in Section 5 of this Ordinance. Section 10, That the Treasurer of the City is hereby ordered and directed to pans on deposit with the Payarg Agent, at least two t2) days before the maturity date a! any bona or interest coupon issued hereunder, an amount from the funds herein appropriated equal to the amount of such bonds or coupes, for Use sole purpose of paying the same, together with the customary Paying Agent's fee, This instruction W the Treasurer is irrevahe and may beentorced by mandamus. Section U. (a, That if there be any default in the payment of the principal of and tterest on any of the bonds, or if the City defaults in any Hand Fund requirement or in the performance of any other covenant contained In this Ordinance. inn Trustee may, and ups: in this Ur1h.jj trust The entities batch are and mthe face of t not of the I'rne,' citas he d the City a. tnate, ti. not be re1uurs. !,, ke a'." action Trustee unless 4 -Mall lava requested to do s In writing by holders of not less than ten pare( I10%) in principal amount of the be;. then Outstanding and sl:all have be Offered reasonable security and - demnity against the costs, expens and liabilities to be incurred therein thereby, The Trustee may r'sim `any time by ten (lot days notice writing to the City Clerk, and t majority In principal amount of boldn,of the outstanding bonds at time. with Cr without cause, In remove the Trustee. In the event at vacancy in the oCice of Trustee, eith by rcstgnatroo a by removal, t. majority in principal amount of t holden of the ovlstandir1g bonds m. appoint a new Trustee, such a sal signature of the City Clert the written request of the holders of a as corporatesal iobeaffaxed and not kw than ten percent (10%) in ha_ caused the coupons hereto at- principal amount of the bonds then taclied to he executed by the facsimile outstanding shall, by proper wit signature of its Mayor, all as of the compel the performance of the duties • find day caJanuary, I9%. of the officials of the City under the ' CITY OF Constitution and ays of the State of - FAYE3TEVILLE,ARKANSAS Arkansas and under the -Ordnance By(FacsimlleSigaturel and protect and enforce the rights of '. Mayor ihP bondholders by acceleration, In. I " - ATTEST: �1 '' statuting approprate proceedings in 1 law or equity or other action deemed ours � ',' '.:"'. "•� necessary or desirable by the ° (SEAL) Trustees. .1 , --- (b) No holder of any bad shall have'' e ' Dorm of coupon) "• ),J any right to institute any suit, action, N s ; ,. ( mandamus or other proceeding in On the first day of (January) (July), equity or at law for the protection a 19' the City of Fayetteville, enforcement of any right under this Wadimgtan County, Arkansas unless Ordinance or under the Constitution the bad to which this coupon sat- and laws of the State of Arkansas ' as I anted is paid prior thereto, hereby unless such holder previously shall the .promises to pay to bearer have given to the Trustee written ' amt ") DOLLARS in awful money of _notice of the default on account of .1 any e Noiled States of America at the which such wit, action or proceeding pal office'- , being as (6) is to be taken, and unless the holders of, •a' months interest then due ou its . not less than ten percent (10;5) In : v.Pro° General Obligation Improvement principal amount of the bonds then" coal Bond, dated January 1, 1980. and outstanding shall have made written .i•1° numbered • requestof the Trustee after the right to h -mat CITYOF �.+ exercise such powers or right of as eta AVP,TTEVaLE.ARKAhSA5 h .,[inn. n the case may be, shall have By(Facslmte5'gnamre) accrued, and shall have afforded the `^N 1( ( - Trustee a reasonable opportunity 1 On tech bond shall appear tayor either m proceed to exercise the Addict powers herein granted or granted by -. t�°° tot instrument -filed wi: Clerk. If the m.'.:,.. . n,c ,tor.efl oflh outstandingcanci bonds slay fail to fill vacancy within thirty 130) dtye alb the same shall occur, then the Ca, shall fnrthwiN designate t a, nee Trustee by writtenainstrument file in the office d' too City Cbrt TI original Trustee and any success* - Trustee shag file a written acceptanr and agreement In execute the crisis imposed upon it or them by this o cluster. but only upon the terms an conditions set forth in this Ordinanc and subject to the provisions of lh Ordinance, to all of which U -resptclike holders of the bonds agre Such written acceptance shall be file with the City Clerk and a copy there shall be placed In the bond transcrip Any succeuore Trustee shall ab become the Paying Agent and she have all the powers herein granted I the original Tnusteeand Paying Agen Section 14. (a1 Thal the terms of to Ordinance shall constiti g a cones. between the City and the holder, ar registered owners of the bonds and i variation or change in the underakan herein set forth shall be made whi' any of these bond, are austandim; except as hereinafter set forth •. subsection (b); and the holder registered owner of any bonds may:. any time for and on his awn behalf ,. for and m lefiaU of all bondholder atone the abBga liotes of the City by. 4 a. is need Arkansas men -- fl :. Bytsl Authorized Signature PIIOVISIONS FOR REGISTRATION AND RECONVERSION This Bond may be registered as to principal sane on (woks of the City, kept by the Trustee as bond registrar, upon presentation hereof to the bond registrar, which shall make mention of Such registration in the registration blank below, and this Bond may thereafter be transferred ony ups, an assignment duly executed by the registered owner or his attorney or legal representative In such farm a Shag be satisfactory to the bond registrar, such transfer to be made on such books andendorsed heseon by the bond registrar, Such transfer may be '' to barer, and thereafter tran- sferability by delivery shall be restored, but this Bond shall again be abject to successive registrations and transfer, as before The principal of this Bond, it registered, unless registered to bearer, shall be payable -r'-" lama necessary Ontv to or upon the order of the expeaatncldatlthereaandpayang ' registered owner or his legal .Tbebendaare wing thebonds. representative, Interest accruing on _ b full issued pursuant Band this Bond will be paid only cn compliance with tation and surrerwier of the - ablution and haws d the Staled ..' attached hed Interest coupons as they -a•..Artanwa Paztkularly'Amendment , 'f respecnvety become due, and not. -`N sOthe Caatiataondthe. Sated '?l withstanding the registration of ths A*tnsas, and pursuant to Ordinance •' Band AS to principal, the appurtenant Write of the City, passed and < interest coupons shall remain payable F9 • Droned Oro:,, the fA>d a day -.to bearer and shall continue to be a,Y .. • 19% (ion"••AuUw ' ''transferaisk by delivery; Provided, liv O°dasaw^), andineladlona h 4 • N which. e l jmity d lha legal ` &hat time yafg thereafter while this ' ydars favor aY voila on the _ ♦Btid k xctered L, Ne tome d the question voted to vOrd the issuance 'r;, Dl the bade. Referenced a...... e=owner, else unmatar'd coupons *t. : of Arkansas, or to instiatesuch action, suit or proceeding in its name, and •.i, unless, also, there shall have been is offered to the Trustee reasonable security and indemnity against the 3 cat, expenses and liabilities to be . Incurred thereon or thereby and the Trustee shall have refused or neglected to comply with such request within'a reasonable time, and such notification, request and offer of in- demnity are hereby declared In every such cave, at the optional the Trustee, to be conditions precedent to the execution of the powers and mat of this Ordinance or to any other remedy hereunder. It is understood and hi - tended that no one or more holden of the bonds hereby secured shelf have any right in any manner whatever by his or their actions to affect, disturb or prejudice the security of this Or. chance. or to enforce any right or the terms an d in thin Sectio: the holders an, of not less tha. cmn (ii%) r I amount of fur log shall have the o time. anythm: )rdinance to the' raluYang, altering to or rescardang, it iy of the terms o d in this Ordinnann 'muting Ia an extension of the ity,d•the principal of or the floe u. bond issued hereunder f;ainstruction in the principa, d'd -any bond or the rate at it thereon, or (a) the creation or at spccal W revenues other be''pkdge treated by this or Will or (d) a privilege or priority bond or bonds over any other r bonds, or le: a reduction in the ate principal amount of the required, (or consent to Solids mental ordinance L t. on IS. That the City covenants shall not take any action or or permit any action tobe taken dither to exist which causes or rose the interest payable on me to be subject to federal income Or. Without limiting the lily of me foregoing, the City its that the proceeds of the will not be used directly or in. y in such manner as to cause the to be tinted as "arbitrage within the meaning of Section 1951,asa mended. • Section 16. That the provisions ad this Ordinance are separable and in the event that any section or part hereof shall be held to be invalid, such Invalidity shall not affect the remainder of Nis ordinance, maintained In the manner herein Section l7. That all ordinances am provided and for the benefit of all 1 resolutions and parts thereof in corn. holders of the outstanding bonds and ' ffict herewith are hereby repealed to coupons, and Nat any individual rights theextent of such conflict. of action orother right given toone or Section It That thisOrdinance more of well holden by law am not create any right of any character All rights of action tact or under any a secured here! Trustee, may I the possession or ce to the •and no right of any character shat. rovided. '4.arise under or pursuant to it until tht seder this bonds authorized by this Ordinanet the lands shall be issued and delivered. e by the -' Section 19. That it is herebi itwitirout ascertained and declared that Ihr ( any of the bads or ' improvements to be linanecd by ton Rrag theretoand ray vI.bonds authorized hereby are an in or proceeding In- . medatey nestled U the City e Ht pia. e trustee sill be . j' Is to meet the medical and nursing me and for Ube bene1LL needs of the Inhabitants of the City rte of the bade and The Improvements cannot be matte Ito the prwswns .OfwRDaut the issuance of these ands. ?. r '. " ttm andthaefae. It is declared that an ly bereto conferred emegeny exists and this Ordinance I to the Task. Orb beingoeary for UaDreservation of e bond. IA intended to.*'e Me Public peace, health and salit) any other remedy or't elan be in fans and ale effect im, provided: and eseLY malbrwb,nla.i Mo('nr i,e n,.auw 9r Some p,r•na a�ineyare UeaB sign.uue of is Mayor. all as .. F 'teed ri Rof !f •atPb s. tirst day of January 1911). OF 9•Aseae i'Ma •.. raw M Warmdenomination. numbers'ird Interest raqubcmelbwi PAVER calm I arid EATLLE. ARKANSAS yf,T gMerrr ieosa grttilsal t the bonds shoe be n 1 BY (F lie Sgn.brc! .sw�leealMltld at / 1 .'cued tut bdaaa of the CRY by the Mayor AT7T5'Y: " '.serape and City Clerk (with the fee - City . T vfa.a a- elmee aiglsaatu of the a Mayor and the ) (SEAL) Clerk e�al Otoads I be a - an have of tie City on Clerk) 'iB� t No. u b tM and shall have impressedtethereon the ml of the City. Interest Coupons snag (form ofcoupon) oad Bra5tab MArkarcat be executed by the facsimile sign. tuft No. $ da sum he dated January t' of the Mayor. The facsimile signature asst will ba payable July 1. of the Mayor on Use bads andcoapw On the first day of (January I (July), aemranaUY thereafter an shall have tesame force and effect as 19• the City ofFsas.0 tale. W and July1 of each year. The it he had perisatialy Signedeach of the Washington county. Arkansas, unless mature on January I of each Dada and coupons. the band to which this coupon u al. 110w$ (but shallbesubject to Section 5. That the bonds and ached is paid prior thereto, hereby m prior to maturity as coupons shall be In substantially the promises to pay to bearer •rrtforthl: fneowing/orm: DOLLARS in lawful money of .............AMOUNT the United States of America at the [ 56,oM ' UNITEDSTATESOFAMERICA principal office ' ,being SIX (6) ,0.000 STATEOFA:IKANSAS months interest then due on its • 4O, COUNTYOFWASHINGTON General Obligation Improvement a,oho CRYOFFAYETTEVILLE Bond, dated January 1, 1990, and 6,03 % GENERAI.OBLIGATION .nu�mybered 50.000 LNPROVEMENTBOND v=- 4, aP• CITYOF S5,ow No. .� FAYETTEVILLE. ARKANSAS -.-- --• THESE By(F'aastmaeSignature) so,30 PRESENTS: ,. I Mayor ss,am That the City d Fayetteville. '1 On each bond shall appear the M.000 Washington County, Arkansas (the i 70,000 •City"), acknowledge Itself owe ' b . following: t CERTIFICATE of me officals of the City under me Constitution and Lsys W the Slate of USArkansas ' and under tOrdinate and protect and enforce the right1 of the botbdders by acceleration, in- stituting appropriate proceedings. in law or equity or other action deemed necessary or desirable by the Trustees. (lei NO holder of any bold shall have any right to institute any suit, action, mandamus or other proceeding in equity or at law for the protection or enforcement of any right under this Ordinance or under the Constitution and laws of the State of Arkansas such ch holder previously shall have given b the Trustee written notice of the default i account of which such wit, action or proceeding is to be taken, and unless the holders of not less than ten percent (10':) in principal amount of the bonds then outstanding shall have made written request of the Trustee after the right to exercise such poem or right d ac- tion, as the case may be. Mal have accrued, and shall have afforded the Trustee a reasonable opportunity either b proceed to exercise the 75,000 andforvalue reeerved Promises opay I This is to certify that this is One Of suit or proceeding in au name, 10.000 to bearer. orB thishoed beregistered - the City of Fayetteville, Arkansas ., unless, also, there shall have I ES,30 to the registered owner hereof' led General Obligation Improvement . offered to the Trustee reason 90.000 sum of DOLLARS in sands, dated January 1, )900, men-` security and Indemnity against 95OM awful money of the States of tinned and describedwithin. . I cost, expenses and liabilities If Ito.= day of . America on the first day of January. TRUSTEE incurred thereon or thereby and 110,000 , and to pay Interest hereon at 1 By(a) Trustee 'shall have refused Its.= the rate of percent I Authorized 5ignabrre neglected to comply with such roc ce of the bads was approved 1 %) per annum from date until within• a reasonable time, and etlon of the City at a specml Pald. Inbml'e payable semiannually PROVISIONS FOR REGISTRATION notification. request and offer o The bonds are being issued on January I and July I of each year. AND RECONVERSION damnify are hereby declared Inc urpae of financing the cat to commencing July 1. 1900. Payment of This Bond may be registered as to each case, at the option Of the Tire of contracting Improvements principal, and payment ot, interest rincipal alone on books of the City . to be conditions precedent a ty's Rowital. when evidenced by coupons, shall be, kept by the Trustee as bond registrar, execution of the powers and W ends are general oblijatbnn d made upon presentation of the bonds i upnn presentation hereof to the bond this Ordinance or to any other rat and the City pledges to the and coupons at the principal ot(ic Ito registrar, which shall make mention of hereunder. It is understood an t of the bonds its full (the • -Agent" ). Wch registration in the registration tended that no one or mom holds sdte and taxing power inehM6a[ 9Ynd<e" and is & below and this Bond may the bonds hereby secured shall enforce me ubligttis:o of the Qty oy proper suitor that purpose. - (b) Sab;ert to the tuns an prorisi eoobined in this Sect➢ and not otherwise. the holders at registered owners of not less th: heventvfive percent .,-,..t. .J..;,l nmrunt of t 17 as shall he nnessary or acsuaow nn the purpse of moddyii1 , altering. amending, adding to m' rescinding, in any particular, any of file terms or s. provisions contained a this Ordinanre Or In any supplemental ordinance; provided, however, that nothing herein contained thW permit or be construed as permitting (a) an exbadun of the maturity of the principal of or the interest on any bad issued hereunder, • a (b) a reduction in the principal amount of any bond or the rate of interest thereon, or ( c) the creation of pledge of spccal tax revenues other a amen Ne,pkdae created by this Or - dinate. or td) a prlvrege or priority of any bad or bonds over any other bond or bonds, or (e) a reduction in the ate rinci •1 amtuN d ten 7 agDeg P pa the : bonds required, (or cowers to Such 'tNe ' . supplementalordinance. r: - be Section Is. That the City covenasb the that it shall not take any action or suffer or permit any action b be taken or. rest or condition to exist which cause or uch • may cause the Interest payable on Mr bonds to be subject to federdtaae n. M. .cry. taxation. Without . Iimilieg the of the foregoing• Ilya geniality Cgy thWe. covenants that: the pmaeds et so , _r bonds will not tie:nud dbeedy or in, of bonds" IM (c) arly collections ola Continuing Payment of interest when regslered b I specal lea of two mills (the alto Interest shall be by check or draft thereafter be translated only upon an any right in any manner whatever by mailed to the registered owner it his : - assignment duly executed by the his or their action to affect, disturb or i tax on the assessedutratbn registered owner or his attorney or in of all the taxable real and address reflected on the r e8 re resenative In wch form as ,Iproperty. ill be in led City. book of the City maintained by the' shall P TmsleeasBosd Registrar. Shelf be satisfactory b the bond son p will he subject b - •tub isOne d w issue of bonds;. M1'' uch tranufer lobe made an �tfon prior b maturity (moo- ese $ dated webbOoks and endorsed hereon by the from surplus tax Optional from January 1, 193, and numbered from 1 ' ' bond registrar. Such transfer may be d below) and optional from , to Inclustve,ahlofliketenorand • b bearer, and thereafter Iran- ourcer)-in inverse numerical effect except as to number, - . slenbinly by delivery shall be it a price of par and accrued restored, but this Bond shall again be temsuws: devominetion, rate of interest. 'c, wbfrctbwccessive registrations and root on any mere t p of the maturity and right of pr br rcdemp transfers as before. The principal of tax on any interest payment lion. The bonds are named for the this Bond. a registered, unless :purpose of floating the ens, of the registered to beater, shall be payable 'nom funds from any savtw an• construction of improvements to the only to or n the order of the anal paymevtdaleoncodsitar City, sIn iden, paying necpaazyying registered owner or his legal y 1,1965. -. ... - extheexpe iesMensuing the boss. inB representative. Interest accruing an ,mount of the intery IPaymend Neeapenses olusuinBNetwnlds. +, this Bond will be paid only on ale 1, 193. January 1, 1961 and Thebonds am issued with tht band presentation and surrender of the 1981) will be provided for from in full end laws with the Cory attached interest coupons as they seeds of the sale of the bounds. sti0alion and laws of the State of - respectively become due, and not- .ty reserves the right b flan. Arkansas, Particularly Amendment - withstanding Me registration of this me bonds proceeds in that No. 10 b Ue Constitution of the Stale of L. Bond as b principal, the appurtenant I from the flat available Arkansas. and pursuant to ordinance interest coupons shall remain payable ionsofthe speeWtax. -I No. of the City, passed. and I to bearer and shall continue to be City will covenant that, iubkd approved on the - . day , I ; transferable by delivery; provided, conditions set forth bean of ;•193 (the "Authorizing y. that if upon registration of this Bond;. Is lea collections, being at which "),andaneladithe hdd • tryst any time thereafter while this ions from the special tai In • at which the majority of the legal - �,d is registered in the name of the of the amount necessary to • voters of the City voting on the .. owner, the unmentured coupons u1e the prompt payment of the tpeshose voted in favor of the issuance tachad evidencing hereon shall to be lal ig interest f on. and trustee's to bonds. Authorizing ReizO is nce oY Nmafter aid hereon be tying nds a s fee in evrbec me made ta Use nOrdinance for paid u bonds df the same become the details of the of fure and extent and - - surrendered to said band will ben, . the security and the rights naild he to that effect be enrar nternt edfrom Umebtime ontydomed hereon by the bond registrar Merest payment date, as led t. ' red mist of the e and the holders and thereafter interest evidenced by meat available, to redeem maturity. snd bond, redare owners of the bonds. stjch surrendered awpcn maybe Paid all hard$ prior to nafu lly- : The bonds are general proceds of • by check or draft of the bond registrar will be such mandatory the continuing payable rom the proceeds of :. tplrnt to the astral that the LOU' a etennuing annual two' met special at the etimes providedthis bend the st ant to the City for the period • ax (the under the"special ui') levied by the "",. to the owner of wond by the City under the authority of Amend- - to the" address shown on the projected payout an the basis ofen registration book[. This Bond when so at cost call does not exceed the matt No.UbUle ConstitutionheCiyhereof by st east that wouki per result from an State of Arkansas, and the City hereby converted n re into a coupon bond at the its full faith, credit and taxing written request of the registered owner st rate of 4% per annum for the pledges for - and upon presentation at the office of I of the projected payout on the power. including the special tax, said bond registrar. Upon such y received by the City. In NThe bonds are subject bad. reconversion the coupons representing moving the extent of such The bonds are subject b redemption the interest to become due thereafter .eery redemption. that collections it will be prior to maturity (mandatory from to the date of maturity will again be reed Ill that Collections of he surplus tax al Irons nedsour below, attached to this Bond and a statement al tax will be at the rate of esIX%.d and optional from other sources) price in will be endorsed hereon by the bond hat the Same 119191 ) teased inverse numerical order at a Price of .4, registrar in the registration blank ,Uon will leverne and convey theioIt pate SUr iltteostasfoeows: - . below whether it is then registered as islet added by the conversion (1) From suryhs collections of the • mDrincipal or payable to bearer. nuts interest. Redemption on special ax on any interest payment r . est payment data from surplus data; %. Z .) Date of oi collections in excess of such (2) From funds from any sree on - - Registration latory redemption will be op any in''mt payment date on and after _r' ,;,, ...:. d Usher Ne aw however, all JanuaryL 1985. ` Nameof ' ctto n O( Ue sprcul ax must be Tbe amount of Ibe Interest payments : R utered Owner s ` r !.v Ion paymentofdeatserv'seon Ne (due July 1, 193, January I. 1901and s at maturity or redemption prim July I. 1991) will be provided for from d (7s !' aturity and can be used (or t the proceeds of the sale of the bonds ' ' „ Manner of u• Registration '*: r purpose. The City reserves the right to �11W.{/*`N 6 be per tat and dual eopuons will Dune the bend proceeds in that A '. - SVI be permitted, act the purchaser amount from the first available S AP" Bond Registrar I have the privilege of converting collections of the special tax. s to an issue bearing a lower The City covenants that, subject to wadSection 6. That in order to y the or rates of interest, with any the conditions set forth below, surplus pay as they mature, with Interest 'ersion to be upon such terms that tax collections, being collections from (thereon, then u hereby levied upon a6 City receive t less and pay no thespecaa lxinexcessoftheamount _ ,taxable real and personal property a Nan It would receive and pay a neceuary to insure the prompt within the city a continuing annual bonds were not converted, to be payment of the principal of, interest special tax of two milt (the "special act to the approval of the Cey's on. and trustee's and paying agent's tax") on each dollar of assessed rdof Director ,and tobe subject b fees In connection with the bonds as (valuation to be collected annually as buowineardttions: the same become due, must be used long as may be necessary to pay the Any g venlon $hall be In w• from time to note on each Interest . principal : of, interest no and Trustee's t'on payment dale. as and b the extent dance wan flue Universal Bond - avaeabk. - to rMrem oustandag ' end paying Agent's fees in connection tors e i es: •-. bonds prior to maturity. There will be - with the bonds. The City Clerk is -. Tea average maturities may rot • such mandatory redempuon to the 'directed to transmit a copy of this sherbrteOey more thanes months: 'cite IBw tlbe total mterevtmut to the _ Ordinance to the County Clerk of 1 The difference between the City for the period of the prolected ' 'Washington County. Arkansas, to the these rate of Interest and the lowest a of interest in the converted payout on the besd of tM matdatay a '. end that the special ax may be my nodule may notes _, call don not exceed the inlemi cat ' tended on the tax books of the County I. The diff aer that would result from an interestflu.a ,. and collected a Ne emds ngrd loth ith the est J and the loowe�st hie eon the rate _ of je per annum Ion the periodofthe, �„ are paid in full or until e car a,ted ac M interest in led paY0°t on schedule projected m B andat ry adrgaa1 provision Is made for their •ad t parcel: at niay not ex- repelvex by the Clry Payment. The City covenants and 9 All bonds tiiaMta a the extent of such mend!left agrees Mal so of Me revenues from 9 the Sama redemvdan.aw•dl ae!alssumed 1p all .r t rsDerulbllax shall e placed In a sit snag but the tame ate d b• ceilecliais of Ile $Dec rand deslaaated •'19w General eal. the rated 13%, till that the xatrc F ran Oldder sha8 specay one plus us 119x9) asseaed vaWalion pN tmbWe ._ ` lDll[atit IMPMC rsem Boon Fund" utrreal. No OM of leas than par p ... and (5) that the principal added by the•' I Be "Bosd Fluid"), fa a bank or banks ccrutl Interest will be entertained. 'eonversleo constitutes ,iaterfl6;; dpigiwtd from time to time by the N award, a made, will be to the Redemption on interest paYtaddates .-• Pty holding niemoerWy to W Inner. whose bid wroth a us. lowest1 • Depsa taeursry Ca• N d bye cost ta the Call deter. from surplus lax red mptihwjl lea•` to lint and used Solely for the the byts ling ate teal Interest of such mandatory law. hooeves. Sit. a m Ot O1 the prncipal ot. intervalon .1 the rate bid from Me date Of the cotional. Under the tow, hooww'es bey% P Y ustcel and Paying Agent's 1.g ales to maturity and deduct collections of the special tax mar . end C bon b' The ins .nn.�at.. a.v,n,.nr or debt service an the - ,jn.. connection with w . prejudice the security of this Or- the ere dinance. or to enforce any right _ hereofe hereunder except in the manner herein invalmi provided, that all proceedings at law remain, or inequity shall be instituted, had and Seetk maintained in the manner hereof (eseluti and for the benefit of all .. flint he, Bprovided olden of the outstanding bonds and theehe coupons, and that any individual rights Secltl of action or other right given to one or .- sot Can more of such hoiden by law are and an restricted by this Ordinance to the arise u f has andremedles herein provided. r b Cc) All rights of action under this bonds also, shall beuw Ordinance or under any of the bond. Section secured hereby. enforceable by the ascertained . Truslce, may heenforced by it wthout ,unpractical the possession of any of the bonds or bends out' coupons appertaining thereto, and any mediates r wch suU, action or prtecdbg in- e u b meet stituted by the Trustee shall be U a ' • brought in itsnan a and for the becefit needs of all the holden of the buds and The Lmf coupons, subject to the provisions of without tie and, thenel thisordinance. (d) NO remedy herein conferred emergency -upon or reserved b the Trustee or to . being necc. the boldera of the bonds is intended to tlhe-shall be exclusive of any other remedyfw heir remedies herein provided, and medi bly and every such remedy shall be w, PASSED 'cumulative and shall be In addition to ;. . every other remedy given hereunder orgiven by any law tar by Rae ten. y .:.. , stitutioaofthesbbdArkansaa.. - .- jr• ATTEST: - Be _.: ae...I.o • (et No delay or omission of • - Tnlstee or of any holden of the bonds t to exercise any right m power accrued upon any default shall impair any sudli right or power or shall be construed to 'p; be a waiver of any such default or an acquiescence therein, and every power and remedy given by this Ordinate to. the trustee and to the holders of the bonds, respectively, may be exercised from time b time and as often as easy bedeemedexpedient r+-, (• I) The Trustee may, and open Ibe;as written request of the holden d noty_.' ' lea than ten percent 110%) In Prin-iy, '' cipal amount of the bonds then standing may. waive ai�ryry larismry which shall have been revedied belare the entry at Mal judgment a dl$ b- in any wit, action Or supoas s this strained under the Prov 5.4 ii V. Ordinance or before the comPlrban d but t such `other existing a any affect ap +.hapair nt right( or defamlb AT }..squab any n2Ab ar rnnedw eeo- :1 Section ram. • = herein lout That beeaeale shave - beeniIn uased be executed have been executed nd by al Mayor Cit City -Clerk and e seal aloe they shall . ira- as herein Prnv' which e delivered b the Trustee, shall to the picas them ale deliver them to the purchaser upon payment in cash of the purchase price pas accrued interest from January 1, 1900 teal sale p provide '). The am necessary to provide for the payment of interest on the bonds unitlaOlkc tions of the special ax are available shelf be deamited in the Band Fund' a bank sun tt a member of tile renera, Deposit Insurance Corporation. The' morays in the Construction Fund shall r be, used for accomplishing the In'; .,provemenb, payog -expe ses tn- ll�eridenal thereto and paying the a- Penes of issuing the bonds, with any unexpended balance to be deposited In the Bond Fund. J^R • Moneys an deposit b' the COu-. etrucUon Fund in excess of the amnum insured by the Federal Deposit-Iff- .. surance Corpmatioo-.must be"con' tenuously secured by burls or other .. - direct or fully guaranteed obegatrom I tc7